By Patrick McCarran, Real Estate Broker

Each of the four types of standard agreements—Exclusive Right to Sell, Open Listing, and Exclusive Agency—is a legally binding contract that authorizes a broker and her sales associates to produce a buyer for a home, according to the conditions specified in the contract.

Depending on the type of listing agreement, you can expect to see most of these terms detailed in the document.

• Terms of the Agreement

The length of time the contract will be in effect typically runs anywhere from 30 to 90 days, depending on the local market. Under Terms of the Agreement, you’ll also find the price of the home. You should arrive at the home’s market value after considering the Comparative Market Analysis and other market factors with your agent.

• Commission

It may come as a surprise that commissions are not set by the industry and are negotiable. Real estate professionals expect to earn between 6% and 7% of the sale price, depending on the market and the services offered. The home is generally offer on the MLS and  the commission is split with the buyer’s agent.

• Multiple Listing Service (MLS)

This section authorizes a real estate professional to list your home with the MLS. While you have the right to opt out of listing with the MLS I do not recommend it. The MLS can dramatically increase exposure and with it help maximize your home’s value The MLS is the main portal to the Internet and will increase the chances of selling your home.

• Lockbox

Basically, a hollowed-out padlock or miniature safe holds a key to your home. The lockbox allows convenient access for Agents showing the home. Only an Agent with an electronic key can gain entry. The visit is recorded and accessible to find out who showed the home and when.

• Description of the Property and Its Condition

Here you’ll find a description of the property and its general condition as well as the condition of its major systems—mechanical, plumbing and electrical. Along with the description should be a list of the items that will stay with the home, for instance, the washer and dryer, and those items you intend to remove such as a special light fixture.

• Marketing Plan

While the marketing plan is not specifically in the agreement it can be added as an addendum. The marketing strategy should be discussed and structured to cast a wide net and might include advertising, open houses, the multiple listing service, signage, fact sheets, color flyers, and so on.

Your Realtor will complete the listing agreement based on your input, so you may want to take time before you meet to consider your response to each section of the contract. The more prepared you are, the less likely you’ll have a misunderstanding down the road.

Patrick McCarran is a local Realtor and Broker DRE# 01325072. He can be contacted by phone or text at (925) 899-5536, pmccarran@yahoo.com or www.CallPatrick.com.  An independently owned and operated office.  In association with Realty One Group Elite DRE# 0193160. Equal Housing Opportunity.

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